Wed, Jan 09, 2019 - Page 3 News List

TCMC execs have their status changed for better oversight

By Sean Lin  /  Staff reporter

Lawmakers yesterday approved a motion designating the chairperson and directors of state-run investment firm Taiwania Capital Management Corp (TCMC) as government representatives, saying their status as natural persons has allowed them to avoid lawmakers’ scrutiny.

The Chinese Nationalist Party (KMT) caucus in August last year said it suspected employees were engaging in graft.

The caucus during yesterday’s cross-caucus negotiations proposed a motion to designate company chairman Wu Rong-i (吳榮義) as a government-appointed member of the TCMC board.

Industrial Technology Investment Corp (ITIC), a subsidiary of the Industrial Technology Research Institute, has a stake in TCMC, but it did not assign any members to the latter’s board, which amounts to forfeiting its rights in the investment company, the motion said.

ITIC must appoint directors to the TCMC board in proportion to its stake in the company, it said.

Democratic Progressive Party (DPP) caucus director-general Lee Chun-yi (李俊俋) questioned the legitimacy of the motion, saying that it contained requirements pertaining to matters only TCMC directors can decide.

The demands should be discussed at a board meeting or it would set a precedent of lawmakers intervening in the operations of a private firm, he said.

“What private firm? Ninety percent of its capital comes from the government,” KMT caucus secretary-general William Tseng (曾銘宗) said in response, threatening to pull the caucus out of the negotiations if the motion is not passed.

DPP caucus whip Ker Chien-ming (柯建銘) agreed with the KMT’s proposal, saying it is only natural and reasonable that TCMC directors be appointed by the government.

Legislative Speaker Su Jia-chyuan (蘇嘉全) then proposed a resolution saying that Wu and TCMC directors must be designated as government-appointed board members and that ITIC must appoint directors to the TCMC board in proportion to its stake in the latter.

The resolution was carried after it was signed by all four legislative caucuses.

TCMC was launched in August last year with capital of NT$126 million (US$4.09 million), with the National Development Fund and ITIC providing NT$50 million and NT$75 million respectively.

It is mainly involved in investments in the government’s “five plus two” industrial innovation fund.

An investment cap for the company has been set at 40 percent of the fund and individual investments are capped at NT$2 billion.

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